Sun Pharmaceutical Industries, a leading Indian pharma giant with revenues of over Rs. 38,400 crore plus, has posted consolidated revenue growth of 14 per cent during the third quarter ended December 2022 to Rs. 11,241 crore as against Rs. 9,863 crore in the corresponding period of last year with higher sales in North America and emerging markets. However, net profit increased only single digit by 5.2 per cent to Rs. 2,166 crore from Rs. 2,059 crore. EPS moved up to Rs. 9 as compared to Rs. 8.6 in the last period. The Board has declared interim dividend of Rs. 7.5 per share.
Its formulations sales increased by 13.4 per cent to Rs. 10,530 crore and that of APIs improved by 9.3 per cent to Rs. 515 crore. The company’s domestic formulation sales increased by 7 per cent to Rs. 3,391 crore from Rs. 3,168 crore, contributing 31 per cent to its total revenues. Its sales in North America went up by 16.6 per cent to Rs. 3,466 crore from Rs. 2,972 crore. Similarly, sales in emerging markets went up by 18.2 per cent to Rs. 2116 crore from Rs. 1,790 crore. Emerging market contribution to total revenues worked out to 19 per cent. Revenues from ROW moved up by 15 per cent to Rs. 1,556 crore.
Dilip Shanghvi, managing director, said, “Specialty is expected to continue as a key growth driver for Sun. We are investing to scale up this business, especially in our core therapy areas. Proposed Concert acquisition is a step forward in this direction. Concert’s lead asset, deuroxolitinib has a potential best-in-class profile in Alopecia Areata, an area of dermatology with high unmet need. We are excited to offer this new treatment option to dermatologists worldwide. Given our commercial strength, we would be well-positioned to bring this product to market.”
Our R&D efforts span across both specialty and generic businesses and we continue to invest in building the pipeline for various markets including the US, emerging markets, RoW markets and India. Our specialty R&D pipeline includes 4 molecules undergoing clinical trials. We have a comprehensive product offering in the US market consisting of approved ANDAs for 517 products while filings for 96 ANDAs await US FDA approval, including 28 tentative approvals. For the quarter, 4 ANDAs were filed. Additionally, the portfolio includes 54 approved NDAs while 13 NDAs await US FDA approval,” he added.
Sun Pharma has acquired Concert Pharma in January-2023. It entered into definitive agreement to acquire Concert Pharmaceuticals Inc. The deal involves payment to Concert shareholders of an upfront cash payment of $8.00 per share of common stock, or equity consideration of $576 million, and plus one Contingent Value Right per share of common stock, which represents the right to receive for up to $3.50 per share of common stock upon achievement of certain time-based net sales milestones. The acquisition would add a late-stage asset – deuruxolitinib for treating Alopecia Areata – to Sun’s offering in dermatology. The transaction is expected to be completed in the first quarter of Calendar 2023.
In December 2022, the US FDA issued an import alert to the company for its Halal facility and the US FDA has excluded 14 products from this import alert subject to certain conditions.
For the nine months period ended December 2023, Sun Pharma registered consolidated revenue growth of 12.1 per cent to Rs. 32,553 crore as against Rs. 29,040 crore in the similar period of last year. Its formulations sales in domestic market increased by 6.1 per cent to Rs. 10,239 crore and that in US moved up by 10.3 per cent to Rs. 10,001 crore. Formulations sales in emerging markets went up by 8.9 per cent to Rs. 6,077 crore from Rs. 5,196 crore and that in ROW touched to Rs. 4,468 crore with growth of 8.6 per cent. Total formulation sales increased by 12.3 per cent to Rs. 30,785 crore from Rs. 27,422 crore. API sales went up by 11.6 per cent to Rs. 1,587 crore. Its R&D expenditure stood at Rs. 1,662 crore as compared to Rs. 1,614 crore.
Its operating profit before tax for the first nine months ended December 2022, declined slightly to Rs. 7,169 crore from Rs. 7,188 crore. After providing lower tax amount and exceptional items, its consolidated net profit increased by 16.9 per cent to Rs. 6,489 crore from Rs. 5,550 crore in the last period.
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